Indices, tech stocks, CPI, Bitcoin, and more are in talks today. Read on to get your daily market news.
US Indices Climb on Stock Surge
Wall Street's main indices rose on Wednesday, supported by the strength of some mega-cap companies, ahead of CPI reports to be released today and big bank earnings to be released tomorrow.
Tech and AI Stocks Kick-Off Strong
Microsoft, Alphabet, and Amazon rose between 1% and 2%, boosted by the drop in bond yields. The yield on the benchmark 10-year bond fell slightly below 4%. Tech titan, Nvidia also gained more than 2.0% to hit a record high after TSMC, the world's largest chipmaker, beat fourth-quarter revenue expectations.
Nvidia daily chart, January 11, 2024. Source: CAPEX.com WebTrader.
The Anticipated CPI Could Bring Clarity to the Fed’s Decision
Markets largely remain in a “wait and see mode” for December's key CPI report, out today, which will likely dictate sentiment ahead of the next Federal Reserve meeting at the end of the month.
Average forecasts expect a slight rise in the headline CPI and a decline in the core CPI. Any lower-than-expected figure, especially the core CPI, would provide bullish momentum to equity markets, especially technology stocks.
While the Federal Reserve has presented a bearish projection for the path of interest rates in 2024, several Fed officials have recently made statements to temper expectations that a reduction could occur early this year.
Oil Inventories Shocked the Market
In the commodity market, Oil was shaken after an inventory figure showed a higher-than-expected buildup of reserves, mainly in gasoline inventories. The threat to supplies from escalating tensions in the Red Sea is being undermined by evidence that demand for oil and consumption of distillates declined.
WTI oil fell around 2% after the data was released.
The Monumental Bitcoin Spot ETF was Published
Lastly, the SEC's long-awaited approval of the Bitcoin Spot ETF was published at the close of the market session in New York.
A long document that will have to be carefully analyzed by investors. The problem is that the day before, fake news was published announcing the approval after the SEC's Twitter account was hacked and the market seems to be more cautious and waiting to find out if this time the news is real or not.
At the close of the North American session and after the document was released, Bitcoin fell by around 1%. This may be because the market is in the "buy the rumor and sell the fact mode", but if the news is confirmed it will undoubtedly mark a milestone in the history of cryptocurrency and will most likely give a boost to its price.
Key Takeaways
- US Indices performed well on Wednesday in response to big tech stocks.
- A drop in bond yields help boosted tech titans like Microsoft, Alphabet, Amazon, and Nvidia.
- Oil fell after inventories showed a surplus.
- The Bitcoin Spot ETF by the SEC was officially published yesterday - a breakthrough in crypto!
Related Articles:
Sources: Bloomberg, Reuters
